Etihad Rail awards $230m contract for O&M facility

ABU DHABI, April 3, 2020

Etihad Rail, the developer and operator of the UAE's integrated railway network, has awarded a contract worth Dh846 million ($230 million) for construction of the central operation and maintenance (O&M) facility at Al Faya, Abu Dhabi.

The contract had been awarded to a joint venture led by Vinci Construction France, reported state news agency Wam.

The announcement was made at an Etihad Rail board of directors remote meeting chaired by Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Member of the Executive Council, and Chief of Abu Dhabi Crown Prince’s Court.

Sheikh Theyab also carried out a virtual visit of the construction site in Saih Sheib region, and launched the civil works on Package B of Stage Two of the UAE’s national railway network project, which is developed and operated by Etihad Rail.

Package B extends over 216 km and includes the construction of a second concrete railway sleeper factory and rail routes to Khalifa Industrial Zone Abu Dhabi (KIZAD), Khalifa Port, and the Industrial City of Abu Dhabi (ICAD).

In addition, the Etihad Rail chairman discussed a mechanism to ensure operational continuity of the company’s fleet in Stage One, which daily transports granulated sulphur from sources at Shah and Habshan to Ruwais, according to approved plans as part of the company’s commitment to provide reliable, safe, and fast services.

Sheikh Theyab bin Mohamed also reviewed the performance report on the execution of Etihad Rail’s strategic plans and the company’s operations to date, in addition to its future programmes and initiatives and the latest developments of Stage Two of the national rail network, which runs from Ghuweifat on the UAE's border with Saudi Arabia to Fujairah and Khorfakkan on the east coast. The Board of Directors approved the audited financial results for 2019 and the 2020 strategic plan.

Sheikh Theyab stressed the importance of continuing to implement the strategic plans, future visions, and operational work of the UAE’s national railway network project, in line with the directions of the wise leadership to continue the implementation of strategic projects as per the approved plans, in order to sustain national achievements.

He also highlighted the necessity to execute precautionary and preventive measures to ensure business continuity while supporting the efficient dealing with changes, thereby maintaining performance and productivity throughout the various sectors of the company.

The O&M facility will be the largest and the most important facility on the network; it will be responsible for warehousing, installations, operations, and the maintenance of locomotives and wagons. The facility will also include an administrative building to control the operations of the whole network.

Etihad Rail has now awarded all civil works and construction contracts for Stage Two of the national railway network. The company has also launched construction on Package A of Stage Two, signed a contract for the construction of a series of freight facilities centres, and awarded a contract for the supply of locomotives to expand the company’s fleet to 45, underlining the fact that Etihad Rail is progressing at a strong and steady pace towards completing one of the largest and most important infrastructural projects in the UAE.